Gilded Age Politics and Corruption: Grant Administration Scandals (1865-1900)

1. Chapter 23 Industry Comes of Age 1865 – 1900

2. The “Bloody Shirt” Elects Grant • The Republicans nominated Civil War General Ulysses S. Grant, a great soldier but had no political experience. • The Democrats could only denounce military Reconstruction but couldn’t agree on anything else. • The Republicans got Grant elected (barely) by “waving the bloody shirt,” • reliving his war victories to get him elected • though his popular vote was only ahead of rival Horatio Seymour, the Democratic candidate who didn’t accept a redemption-of-greenbacks-for-maximum-value platform, and thus doomed his party. • However, due to the still-close nature of the election, Republicans could not take future victories for granted.

3. The Era of Good Stealings • Despite the Civil War, population still grew (due to immigration) but politics became very corrupt. • Railroad promoters cheated gullible customers. • Stock-market investors were a cinder in the public eye. • Too many judges and legislators put their power up for hire. • Two millionaires were Jim Fiskand Jay Gould. • 1869 – tried to corner the gold market (would only work if treasury stopped selling gold) • worked on President Grant directly, through his brother-in-law • plan failed when the treasury sold gold. • The infamous Tweed ring of NYC, headed by “Boss” Tweed, employed bribery, graft, and fake elections to cheat the city of as much as $200 million. • The New York Times secured evidence of his misdeeds, and Tweed, despite being defended by future presidential candidate Samuel J. Tilden, was convicted and imprisoned.

4. A Carnival of Corruption • Grant failed to see the corruption going on • Because he leaned heavily on patronage, he failed to see the problems • cabinet was totally corrupt (except for Sec. of State Hamilton Fish) • his in-laws, the Dent family, were especially terrible. • The Credit Mobilier, a railroad construction company that paid itself huge sums of money for small railroad construction, tarred Grant. • When uncovered, two members of Congress were formally censured (the company had given some of its stock to Congressmen) and the Vice President himself was shown to have accepted 20 shares of stock. • 1875- the Whiskey Ringrobbed the Treasury of millions of dollars • Grant’s own private secretary was shown to be one of the criminals, Grant retracted his earlier statement of “Let no guilty man escape.” • 1876- Secretary of War William Belknapwas shown to have pocketed some $24,000 by selling junk to Indians

5. The Liberal Republican Revolt of 1872 • By 1872, a wave of disgust at Grant’s administration was building, despite the worst of the scandals having not been revealed yet. • reformers organized the Liberal Republican Party& nominated Horace Greeley. (owner of the New York Tribune) • Democrats supported Greeley, because he called for a clasping of hands between the North and South and an end to Reconstruction. • The campaign was filled with mudslinging • Greeley was called an atheist, a communist, a vegetarian, and a signer of Jefferson Davis’s bail bond (that part was true) • Grant was called an ignoramus, a drunkard (true), and a swindler. • Grant crushed Greeley in the Electoral & the popular vote as well. • 1872- the Republican Congress passed a general amnesty act that removed political disabilities from all but some five hundred former Confederate leaders.

6. Depression and Demands for Inflation • 1873 - a paralyzing economic panic broke out • started with the failure of the New York banking firm Jay Cooke & Company, a financier of the Civil War. • too many railroads & factories being formed than existing markets could bear and the over-loaning of banks to those projects. • Greenbacks that had been issued in the Civil War were being recalled, but now, during the panic, the “cheap-money” supporters wanted it back. • Supporters of hard-money (gold & silver) persuaded Grant to veto a bill that would print more paper money • Resumption Act of 1875 pledged the government to further withdraw greenbacks and made all further redemption of paper money in gold at face value, starting in 1879. • Debtors cried that silver was under-valued (another call for inflation)

7. new silver discoveries in the later 1870s shot the price of silver way down. • Grant’s name remained fused to sound money, though not sound government. • As greenbacks regained their value, few greenback holders bothered to exchange their more convenient bills for gold when Redemption Day came in 1879. • 1878- the Bland-Allison Actinstructed the Treasury to buy and coin between $2-4 million worth of silver bullion each month. • The Republican hard-money policy led to the election of a Democratic House of Representatives in 1874 and spawned the Greenback Labor Party in 1878.

8. Pallid Politics in the Gilded Age • The Gilded Age, (coined by Mark Twain)was filled with corruption and close presidential elections • Even though Democrats and Republicans had similar ideas on economic issues, they disagreed. • Republicans traced their lineage to Puritanism. • Democrats were more like Lutherans and Roman Catholics. • Democrats had strong support in the South. • Republicans had strong votes in the North and the West, and from the Grand Army of the Republic, an organization made up of former Union veterans. • 1870s &1880s - Republican infighting was led by rivals Roscoe Conklingand James G. Blaine, who bickered and deadlocked their party.

9. The Hayes-Tilden Standoff, 1876 • Grant almost ran for a third term before the House derailed that proposal, so the Republicans nominated Rutherford B. Hayes, dubbed the “Great Unknown” because no one knew much about him, while the Democrats ran Samuel Tilden. • very close election - Tilden got 184 votes out of a needed 185 in the Electoral College • votes in four states, Louisiana, South Carolina, Florida, and part of Oregon, were disputed. • The disputed states had sent in two sets of returns, one Democrat, one Republican The Compromise of 1877 and the End of Reconstruction • The Electoral Count Act (1877) set up an electoral commission that consisted of 15 men selected from the Senate, the House, and the Supreme Court, which would decide the victor

10. February 1877 - the Senate & House met to settle the dispute; Hayes became president as a part of the Compromise of 1877 • he would become president if he agreed to remove troops from the remaining two Southern states where Union troops remained (Louisiana and South Carolina) • a bill would subsidize the Texas and Pacific Rail-line. • Not all of the promises were kept, but the deal held on long enough to get Hayes elected as president. • The Compromise abandoned Blacks in the South by withdrawing troops, and their last attempt at protection of Black rights was the Civil Rights Act of 1875, • 1883 -declared unconstitutional by the Supreme Court . • Whites once again discriminated against Blacks, forcing them into low-wage labor and restricting their rights. • 1896 - the Supreme Court ruled, in the case of Plessy vs. Ferguson, that “separate but equal” facilities were constitutional.

11. Class Conflicts and Ethnic Clashes • 1877 - the nation’s largest railroads decided to cut wages by 10% • workers went on strike • President Hayes sent troops to stop this • more than 100 people died in the several weeks of chaos. • The failure of the railroad strike showed the weakness of the labor movement • partly caused by friction between races (Irish and Chinese) • In San Francisco, Irish-born Denis Kearney incited his followers to terrorize the Chinese. • 1879 - Congress passed a bill severely restricting the influx of Chinese immigrants, but Hayes vetoed the bill on grounds that it violated an existing treaty with China. • After Hayes left office, the Chinese Exclusion Act, passed in 1882, was passed, barring any Chinese from entering the United States.

12. The Garfield Interlude • 1880 – Republicans nominated James A. Garfield • major general in the Civil War • his running mate, Chester A. Arthurof New York. • The Democrats chose Winfield S. Hancock • appealed to the South due to his fair treatment during Reconstruction • a veteran wounded at Gettysburg, appealed to veterans • The campaign once again avoided touchy issues, and Garfield squeaked by in the popular vote (the Electoral count was better: 214 to 155). • Garfield was a good person, but he hated to hurt people’s feelings and say “no.” • September 19, 1881 - Garfield is assassinated by a disappointed office seeker, Charles J. Guiteau • after being captured, used an early version of the “insanity defense” to avoid conviction (he was hung anyway).

13. Chester Arthur Takes Command • Chester Arthur didn’t seem to be fit for the presidency, • surprised many by giving the cold shoulder to Stalwarts • calling for reform, a call heeded by the Republican party which became seen as a party of reform. • The Pendleton Act of 1883 passed • established a merit system, making appointments to office on the basis of aptitude rather than “pull.” • set up a Civil Service Commission, charged with administering open competitive serve, and offices not “classified” by the president remained the fought-over footballs of politics. • Arthur cooperated & by 1884, he classified nearly 14,000 federal offices. • The Pendleton Act partially divided politics from patronage, but it drove politicians into “marriages of convenience” with business leaders.

14. The Blaine-Cleveland Mudslingers of 1884 • James G. Blaine (Garfield’s Sec. of State) was the Republican candidate • Republican reformers, unable to stomach this, switched to the Democratic Party (Mugwumps.) • Democrats nominated Grover Cleveland • The campaign of 1884 was filled with the worst mudslinging in history. • one Republican insulted the race, faith, and patriotism of New York’s heavy Irish population, & NY voted for Cleveland (deceided election). “Old Grover” Takes Over • Grover Cleveland (1st Dem. Pres. since James Buchanan) • supporter of laissez-faire, he delighted business owners and bankers. • tried to adhere to the merit system (but eventually gave in to his party and fired almost 2/3 of the 120,000 federal employees • Military pensions plagued Cleveland; given to Civil War veterans to help them, but fraud was rampant .

15. Harrison Ousts Cleveland • 1881 - the Treasury had a surplus of $145 million • most came from the high tariff • Heavy support for lowering the tariff, though big industrialists opposed it. • 1887 - Cleveland openly tossed the appeal for lower tariffs into the lap of Congress. • This would cost him his party’s support and • Cleveland wasn’t a great president, but compared to those around him, he was excellent. • Most of the best men were out of politics b/c it was full of corruption • also passed the Dawes Act(to control the Indians) and the Interstate Commerce Act(designed to curb railroads), both of which were passed in 1887. • 1888 - Democrats renomminated Cleveland; Republicans chose Benjamin Harrison (grandson of William H. Harrison). • Cleveland lost when a British diplomat said a vote for Cleveland was like a vote for England; this turned the Irish vote to Harrison.